- Zenith Materials Limited (ZNC) is refocusing on lithium and related EV-metals through a new joint venture with EV Metals Group
- Zenith and EVM will form a joint venture relating to project lithium rights after completing a feasibility study
- EVM may earn a 60 per cent interest in the lithium rights in two Zenith projects, Waratah Well and Split Rocks
- EVM or its nominee will subscribe for 20,000,000 ordinary Zenith shares for $0.30 per share for a total of $6 million
- Zenith Materials Limited (ZNC) last traded at $0.29 per share before market open on the 14th of January
Zenith Materials Limited (ZNC) is refocusing on lithium and related EV-metals through a new joint venture with the EV Metals Group.
Zenith and EVM will form a joint venture relating to project lithium rights after completing a feasibility study.
EVM may earn a 60 per cent interest in the lithium rights in two 100 per cent owned Zenith projects, Waratah Well and Split Rocks, by sole funding the completion of a feasibility study within 24 months, with Zenith retaining a 40 per cent project share. The agreement includes a non-exclusive right to bring additional projects to the joint venture by either party, to explore for lithium and EV metals.
EVM will fund expenditure to a decision to mine. The parties will then be required to fund future joint venture expenditure in accordance with their respective percentage shares. EVM must arrange all financing for the development, construction, and commissioning of any future mine including Zenith’s share.
Zenith must repay its proportionate share of the project finance including interest from the sale of its proportionate share of minerals produced.
EVM will spend a minimum of $7 million on exploration on the projects, in 24 months, before being able to voluntarily withdraw.
EVM or its nominee will subscribe for 20,000,000 ordinary Zenith shares for $0.30 per share for a total of $6 million.
Funds will source new lithium opportunities, near term advancement of its gold and base metals portfolio and towards working capital.
Settlement of the placement will take place by Monday.
Zenith Materials Limited (ZNC) last traded at $0.29 per share before market open on the 14th of January.